For IKEA, Prospects Improve in India

By

Rajesh Roy and

Rumman Ahmed

Updated Dec. 26, 2012 5:47 p.m. ET

NEW DELHI—The IKEA Group's India plans looked brighter Wednesday, with a senior minister indicating that the government is likely to approve the Swedish retailer's application to set up wholly owned stores and might drop a condition that would have limited the company's product offerings.

"The government has taken a favorable and sensitive view in response to IKEA's approach to us," Trade Minister Anand Sharma said.